Compliance takes centre stage: the importance of “glocalization” for crypto exchanges.
The concept of disruption is baked into cryptocurrency. Bitcoin, the first cryptocurrency, was built to bypass governments and banks and allow trading on a peer-to-peer basis — the decentralized architecture of the Internet has given rise to many such peer-to-peer systems, which have gone on to upend traditional business models. Yet as digital assets gain broader acceptance and find a larger user base, crypto exchanges are increasingly facing regulatory curbs.
Times are changing in the crypto ecosystem, and a focus on compliance is becoming crucial to continued success. At Bitay, a digital asset exchange that began operations in Turkey and is now based in Estonia, we are implementing a policy of “glocalization” when it comes to expanding into untapped markets. The end goal is a global network of local exchanges, all of which are fully licensed and compliant with their respective country’s regulations, to be overseen by a holding company in the Netherlands.
For us, it’s about putting users first and protecting them in the long run.
If crypto platforms don’t meet the requirements or obey the laws of the country where they’re operating, end users are the ones who ultimately lose out.
Take the example of Binance: one of the largest crypto platforms in the world; it has recently encountered intense regulatory scrutiny, with several governments opening investigations into the exchange and others enacting bans on specific products or even the platform itself. While Binance is revamping its business model and improving relations with regulators, many of its users are stuck in limbo.
We’re removing these risks with our “glocalization” efforts. As we bring our multi-pronged services to emerging markets, with an initial focus on India, Azerbaijan, Romania, Bulgaria, Kazakhstan, and Poland, we will be implementing a fully regulated business model: acquiring licenses and registering as required by the country’s regulatory bodies; complying with local laws; and, more broadly, making regulatory compliance a top priority.
Taken together with our secure and easy-to-use marketplace, this emphasis on compliance will put us in a position to become the preferred exchange in a number of untapped regions: CIS (Kazakhstan, Azerbaijan, Uzbekistan, Georgia), Central Europe (Ukraine, Russia, Poland), Southeast Europe (Serbia, Bosnia, Macedonia, Romania, Bulgaria), the U.S., MENA (Egypt, Jordan, Lebanon, Israel, Palestine), and Africa (Nigeria, Tanzania, Uganda).
At Bitay, our mission is to accelerate the proliferation of cryptocurrency and the growth of the crypto ecosystem with our trusted platform, which is known for its robust security and cutting-edge technology.
Yet, any such efforts would be futile if we didn’t adhere to local laws and regulations. Solutions geared towards real-world adoption must address the realities on the ground, especially when it comes to a country’s ever-shifting regulatory environment.
